2024-07-26 15:10:28
The question of whether there would be a finance minister who would reject the agreement to merge it Attica Bank with the Pankritia Bank asked the finance minister Kostis Hatzidakisduring his speech to the Plenary of the Parliament for the ratification of the relevant contract.
“We have an agreement for which the governor of the Bank of Greece warns that if it does not proceed there would be dramatic consequences for depositors, the banking system and the economy. We have one of the largest investment banks that assures that there is no other interested investor. And we also have all the agencies dealing with the issue, who in the House Committee spoke in favor of the agreement. I wonder if there would be a finance minister who would reject this agreement,” said the Minister of Finance.
Stournaras for Attica Bank – Pankritia: Non-merger would ultimately lead to collapse and tremors in the banking system
Mr. Hatzidakis submitted to the minutes of the Parliament all the official documents related to the transaction, specifically:
- The letter of the Governor of the Bank of Greece, Mr. Yannis Stournaras of July 16, 2024 to the Minister of National Economy and Finance in which he presents the capital deficit of the two banks, while warning of the consequences for depositors (which include even a “haircut” of deposits ), the banking system (mass withdrawal of deposits, collapse of the most vulnerable banks) and the economy if the deal did not go ahead.
- The investigation report of possible investment interest on the same or better terms that JP Morgan did following an order from the HFSF, from which it emerged that there was no other interested party.
- The reports of two independent financial advisors (EY and JP Morgan) which according to the law the HFSF must have.
- The letter of opinion from Rothschild (not required by law but requested by the HFSF) according to which the procedure followed is appropriate based on international practices in similar transactions.
- The minutes of the meeting of the Board of Directors of the HFSF on 18-7-2024 for the approval of the Fund’s participation in the transaction.
“What would you do in my position?”
“Everything transparently, everything is at your disposal”, emphasized the minister and added: “So, what would you do in my place? On all this evidence, if I or any Finance Minister were to adopt this flippant criticism heard today, then they could be accused of disloyalty. I wish you to handle a similar situation sometime and reject the solution. Let’s see what would happen then to your parties but also mainly to the banking system and the economy”.
Mr. Hatzidakis made an extensive report on the actions of SYRIZA at the Bank of Attica, noting that an increase in the bank’s bad loans was recorded from 39% in 2014 to 61% in 2019. He also noted the result of the sample audit carried out at the Bank in 2016 by which, as he said, resulted in: “Systematic granting of loans below cost with zero or partial collateral. Short-term bond loans to cover working capital grants. Funding entrepreneurs to participate in a share capital increase so that control of the bank is not lost. A typical case of the construction company “Toxotis” of Mr. Kalogritsa, friendly to the then SYRIZA government which in 2015 took 39 loans from the Bank of Attica with generous interest rates, 2.6% instead of 11.84% which was the corresponding interest rate in its credit rating”.
“Let’s not forget the association with television licenses and the effort to create a “SYRIZA channel” through Mr. Kalogritsa. When you represent the prosecutors, be ready to hear the answers as well,” he stressed.
The minister concluded the qualitative difference that the current agreement has in relation to previous efforts for the Bank of Attica: “We have the involvement of the HFSF as an arm of the State to ensure the stability of the banking system. At the same time, we have the partnership with a private investor, which is also required by the statutes of the HFSF. And we are proceeding with the permission of the EU with the “Hercules” program,” he noted.
“So, he concluded, we have a more comprehensive and effective intervention than the earlier and more recent efforts that have been made. We have essentially closed the backlog that existed with the disinvestment in the systemic banks. And we are taking another step by dealing with another twelve-year pending dispute with the Bank of Attica”.
Attica Bank: Starts loan securitization and absorption of Pankritia
Tax declarations: What K. Hatzidakis said about the extension
The Minister of National Economy and Finance expressed his certainty that the process of submitting the tax returns will be completed smoothly from the floor of the Parliament.
As Mr. Hatzidakis said, 92% of the tax returns have already been submitted so far. He even added that the problem that appeared yesterday afternoon and this morning to several users, has already been addressed.
Tax declarations: What K. Hatzidakis said about the extension from the floor of the Parliament